Inter company accounting and VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
I am currently in an accounting role whereby I work for a large international company and I prepare the inter company accounts/statements etc. I raise invoices on a a monthly basis and need to know whether I should be charging VAT or not - if so how do I know exactly what items need to have VAT billed on them. I raise invoices for a number of items including corporate overheads, IT overheads etc and also supplier costs are recharged out across several entities within the group. I would be grateful if anybody could assist me or point me in the right direction as I have been on to several internet sites but cannot find much information.

Many thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Inter company accounting and VAT

    Hi

    Assuming each company in the group is separately registered for VAT, then you should charge VAT. Most overheads, IT charges etc wil have VAT on them but energy supplies may be at a reduced rate (5%).

    You wont need to charge VAT to foreign countries, but you should have their VAT number if the are in the EU.

    Neil

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